CelcomDigi Earnings Strengthen as Merger Synergy Drives Operational Efficiency

CelcomDigi Bhd’s second-quarter results for FY2026 indicate a strategic shift from merger integration toward sustained growth. RHB has responded to this progress by raising the telco’s target price to US$0.90, supported by accelerating cost savings and consistent performance in the enterprise and fibre segments.

Service revenue for the quarter ended June 30 climbed 1.4% year-on-year to US$669.5 million, or RM2.73 billion. While total revenue experienced a marginal decline of 0.7% from the preceding quarter to US$782.3 million, the company’s focus on synergy realisation is beginning to bolster bottom-line stability. According to the original publisher, second-quarter EBIT fell 3.3% year-on-year to RM712 million, yet first-half EBIT managed an increase of 0.6% to RM1.44 billion.

Operational milestones are a key driver of this financial outlook, with 90% of the company’s network integration now complete. This progress is expected to facilitate stronger earnings and support dividend distribution as the business benefits from the consolidation of its infrastructure. The company is now leveraging its post-merger scale to drive efficiencies that offset fluctuations in top-line revenue.

Looking forward, CelcomDigi is pivoting toward growth segments beyond standard mobile connectivity. The company is building an enterprise pipeline centered on 5G, AI, cloud computing, and cybersecurity services. These initiatives are currently expanding at a faster pace than the core mobile business, positioning the firm to capture more value from the digital transformation needs of Malaysian businesses.

For Malaysian stakeholders, this transition represents a critical phase in the nation’s telecommunications landscape. By shifting the focus toward enterprise-grade technology and high-speed fibre, CelcomDigi is aligning itself with the broader digital economy requirements, ensuring that the infrastructure investments made during the merger translate into long-term relevance in an AI and cloud-driven market.